In a report released today, Yigal Nochomovitz from Citi maintained a Hold rating on Arvinas Holding Company (ARVN – Research Report), with a price target of $10.00.
Yigal Nochomovitz has given his Hold rating due to a combination of factors impacting Arvinas Holding Company. The primary reason is the underperformance of the VERITAC-2 trial, which did not achieve its primary endpoint in the intent-to-treat population, particularly due to the lack of efficacy in ESR1 wild-type patients. This outcome aligns with previous concerns about the trial’s potential challenges and has led to a reduction in the target price to $10 per share.
Additionally, Nochomovitz notes the limited potential for uptake in second-line and beyond metastatic breast cancer treatments, given the trial’s results and the possibility of increased regulatory scrutiny. While there is some potential upside from Arvinas’s earlier pipeline projects, such as LRRK2, BCL6, and KRAS-G12D, the current stock price being below cash levels suggests caution. These factors collectively contribute to the Hold rating, reflecting both the risks and the potential for future developments.